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US Suggests New Legislation Proposal for Crypto Exemption from Securities Laws

  • Stavros Georgiadis
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    In the US, actions have recently been taken to exclude digital assets from being defined as securities.

US Suggests New Legislation Proposal for Crypto Exemption from Securities Laws
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This challenging question, as we have mentioned before, is related to legislation and rules that are of high importance about the future price of major cryptocurrencies in 2019 and beyond. In the US, actions have recently been taken to exclude digital assets from being defined as securities.

Are cryptocurrencies securities or not?

The ‘Token Taxonomy Act of 2018’ is in practice an important amendment to the Securities Act of 1933 and the Securities Act of 1934. Some important highlights in the bill worth mentioned are the following:

“… Direct the Securities and Exchange Commission to enact certain regulatory changes regarding digital units secured through public key cryptography, to adjust taxation of virtual currencies held in individual retirement accounts, to create a tax exemption for exchanges of one virtual currency for another, to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currency for other than cash, and for other purposes.”

Regulation will have an impact on crypto in 2019

It is no surprise that the wiser adoption of cryptocurrencies is based on two major business aspects:

  1. Regulation and transparent rules
  2. Business applications and solutions

The lack of regulatory clarity for initial coin offerings (ICOs) and digital currencies is prohibiting the expansion of cryptocurrencies in daily business solutions. As global current regulations appear to be vague, without any concise rules, large businesses and corporations still have very limited motivation to invest a large amount of capital in building blockchain solutions.

It is still very hard to argue that anytime soon there will a global regulation framework that will have common rules and guidance for the majority of countries that are leaders in blockchain technology.

Western Union is optimistic on the adoption of cryptocurrencies as a financial instrument

Western Union, one of the largest global non-bank money transmission companies, mentioned that they are ready for the adoption and acceptance of the blockchain technology.

“Cryptocurrency might become one more option for a way for assets to be exchanged between people and countries. If that happens, we would be ready to launch.”

Western Union has been reportedly testing Ripple as a potential cryptocurrency platform for business and financial transactions, with no decisions made yet on its usage. It is still unknown whether this idea will become a reality.

But the fact that a company which has a business model on sending money digitally is considering the adoption of blockchain technology may be interpreted as optimistic now for the future of cryptocurrencies. And a legislative decision making the business framework clearer for blockchain technology and ICOs would most probably help in their broader usage.

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About the author

Stavros Georgiadis - CFA Charterholder, Economist, Forex market trader, US stock market financial analyst.

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Jim Cramer Suggests WeWork Isn't Worth Anything Because of Its Immense Debt

  • Alex Dovbnya
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    SoftBank is expected to breathe new life into struggling WeWork, but Jim Cramer says that the company is plagued by a massive debt

Jim Cramer Suggests WeWork Isn't Worth Anything Because of Its Immense Debt
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Market analyst Jim Cramer told The Street that WeWork is really negative worth because of all its gargantuan debt. 

Having someone having leased is great idea, but it was, it was a leasing company, and I'm not going to diminish the fact that it was, at one point this fabulous story because it was growth, growth, growth, but it also was debt, debt, debt. 

On Oct. 22, CNBC reported that SoftBank would take control of WeWork while former CEO Adam Newman would maintain a small double-digit stake in the workspace rental company. 

It is expected that SoftBank would be able to get WeWork on a path to profitability, something that Uber and Lift, which recently launched their respective IPOs, are struggling to achieve. The Japanese giant could fork out an additional $5 bln to fund the embattled leasing company. 

Newman will reportedly walk take a cool $1.7 bln as part of the deal that would put WeWork's valuation to $8 bln on a pre-funding basis (a small fraction of the $45 bln it was worth before its failed IPO). 

WeWork was supposed to go public in September after confidentially filing for an IPO back in April, but its the hype around its public offering gradually started to dwindle and ended an in an epic fallout.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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